growing without pain: how to create a centralized s&op process · process gartner supply chain...
TRANSCRIPT
Growing Without Pain: How to Create a Centralized S&OP Process
Gartner Supply Chain Executive Conference
CUSTOMER & PRODUCT
SEGMENTATION
PRODUCTMANAGEMENT
COLLABORATIVE DEMAND PLANNING &
OPTIMIZATION
INVENTORY PLANNING &
OPTIMIZATION
SUPPLY PLANNING &
OPTIMIZATION
EXECUTIVE SALES & OPERATIONS
PLANNING
YOUR GAME CHANGING PARTNER
FOR S&OP EXCELLENCE
Gartner Supply Chain
Executive Conference
Experiencing exponential growth is exciting. Leading consumer goods manufacturer – Ontex is creating a centralized, continuous improvement S&OP process amidst fast-growth and change.
ContentGartner Supply Chain Executive Conference
About Ontex
Evolution S&OP at Ontex
Process
Scenario management
Raw material forecast
Breaking the walls between operations and finance
Results
Who are we?
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One international businesswith sales in more than 110countries
20production
facilities
27Sales and
Marketing sites
7R&D
centers
11.000Employees
1.9+ Bn Revenue in 2016
30+ Brands
0
500
1000
1500
2000
2500
2013 2014 2015 2016
3 product families
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Baby care
Femcare Adult care
Brands vs private label
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Own brands Retailer brands
2011 2017
24
50
76
50
Brands Retailer brands
History
Gartner Supply Chain Executive Conference
Acquisition of iD Medica
2010
Acquisition of Lille Healthcare in France
2011
Acquisition of Serenity in Italy
2013
Ontex companylisted on Euronext
2014
Acquisition ofGrupo P.I Mabe in Mexico
2016
Ontex company included in the Bel20 index
2016
Acquisition ofHypermarcas Personal Hygiene Business in Brazil
2017
New plants in Spain, Belgium, Germany and France, the Czech Republic and Turkey
1993-2003
New plants in Algeria, China and in Germany
2006-2010New plants in Australia, Russia and Pakistan
2011-2013
The beginning of Ontexin Buggenhout, Belgium
1979
New plant in Ethiopia
2017
Why Enterprise Sales & Operations Planning?
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High rate of acquisitions
Increase in source systems
Constantly changing network
Shift from manufacturing to customer centric
Increase own brands
Many supply channels
Get the basics right
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Executive buy-in
Disciplined and formal process
Decision makers on the table
(cross functional)
If the basics are not yet in place, don’t start.
S&OP journey
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Forecast capabilities
Low statistical model usageLimited Promotional insights
6 months horizon
Advanced forecast modelsCapture and usage promotional
intelegence, collaborative forecasting,18 months forecast horizon
2015 2017Lagging LeadDevelop Perform
Supply PlanningAd hoc offline scenario management
Volume basedDisconnected divisional S&OP plans
Integrated financial impact analysesScenario management
Enterprise plan
Finance integration
No financial integrationVolume based plan
Top line plan with bottom line impactWorking capital forecast
Integrated with budget and strategic planning
Technology Simple static excel tool Dynamic, live advanced tool (Arkieva)
Process
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The Enterprise S&OP process will improve synchronization across functions within Ontex by improving collaboration and aligning the organization around a single operating plan
DIVISIONAL S&OP
PLANT S&OP
ES&OP
ESCALATION PROCESS
GATE
GATEIssues which can’t be solved at plant or divisional levelDemand review
Supply review
Enterprise S&OP
Divisional S&OP
Forecast
Divisional
Plant
Divisional
Divisional
Enterprise
Business unit
Long term raw material planningGartner Supply Chain Executive Conference
Mitigate supply risksBetter insights during negotiationsScenario and allocation planning
Generate 18 month plan for strategic raw materials
Demand plan
Supplyplan
Long term raw material plan
BOM’sSupplier
commitmentsSupplier
Constraints
Scenario managementGartner Supply Chain Executive Conference
Each problem can have multiple solutions, calculating the impact for each enables us to make fact based decisions
Plan for the unknown
Compare fall back scenario’s
Supply capacity
Volume move
Build stock
Outsource
Problem
Build Scenario’s
Execute what-if scenario’s on demand changes, raw material availability, capacity availability, etc…
Cost impactRiskComplexity
Scenario ranking
A B CEstimate impact
Breaking down the walls between operations and financeGartner Supply Chain Executive Conference
P&LP&L
Fully integrated operational and financial forecastDecoupled forecast process
Build volume plan
Price / Volume Build value planFit Gap analysesPlan vs Forecast
Monthly P/LFinal volume /
value plan approval
Simplified process steps
Commercial controllerDemand manager Demand manager / SalesDemand manager / Commercial Controller
BU manager/ Finance Directror
Commercial Controller / Finance Directror
ResultsGartner Supply Chain Executive Conference
Planning Horizon increased upto 18 months
Forecast accuracy improved with 10%
Supply planning accuracy improved with 15%
Significant improvement in reaction time on unexpected supply issues
Obsolete inventory reduced with 70%
Better integration with finance
QUESTIONS?
THANK YOU !
Let’s keep the conversation going.Visit Arkieva & Solventure at booth #S1
Solventuregroup.com | Twitter: @solventure_eu | Booth: #S1